The CEO of Container Store has taken a temporary 10% pay cut
Like many retail chains, the Container Store has struggled of late. Sales are down by 21.1% in the three months ended July 1.
In May, the Texas based business cut 15% of jobs in its Support Center in Coppell and cut retail store staffing by approximately 3%.
To help offset rising costs and employee pay increases, the Container Store CEO Satish Malhotra is taking a voluntary 10% pay cut for six months.
Malhotra's base salary has decreased from $925,000 to $832,000 for six months, effective October 1. His pay will be increased back to its current level on April 1. Last year, the CEO's total compensation was $2.57 million.
Last year, the Container Store lost $158.86 million compared to a profit of $81.72 million the previous year.
“The headwinds are real. CEO'sWe definitely are seeing our customer contend with higher inflation, interest rates, and just a lot of uncertainty, and because of that, then we see a natural pullback in discretionary spending.” Container Store CEO Satish Malhotra
Do you think it was a good move by Malhotra to reduce his salary? Do you believe CEOs are overpaid? Should salaries be reduced so retail workers can be paid more?
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